Orders Issued Under International Banking Act - Societe Generale wants to open branch in US

Federal Reserve Bulletin,  May, 2001  by Robert Frierson

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On the basis of all the facts of record, and subject to the commitments made by Bank, as well as the terms and conditions set forth in this order, the Board has determined that Bank's application to establish an agency should be, and hereby is, approved. Should any restrictions on access to information on the operations or activities of Bank and its affiliates subsequently interfere with the Board's ability to obtain information to determine and enforce compliance by Bank or its affiliates with applicable federal statutes, the Board may require termination of any of Bank's direct or indirect activities in the United States. Approval of this application also is specifically conditioned on compliance by Bank with the commitments made in connection with this application and with the conditions in this order.(4) The commitments and conditions referred to above are conditions imposed in writing by the Board in connection with its decision and may be enforced in proceedings under 12 U.S.C. [sections] 1818 against Bank and its affiliates.

By order of the Board of Governors, effective March 5, 2001.

Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.

(1). Asset data are as of September 30, 2000.

(2.) In assessing this standard, the Board considers, among other factors, the extent to which the home country supervisors:

(i) ensure that the bank has adequate procedures for monitoring and controlling its activities worldwide;

(ii) obtain information on the condition of the bank and its subsidiaries and offices through regular examination reports, audit reports, or otherwise;

(iii) obtain information on the dealings with and relationship between the bank and its affiliates, both foreign and domestic;

(iv) receive from the bank financial reports that are consolidated on a worldwide basis or comparable information that permits analysis of the bank's financial condition on a worldwide consolidated basis;

(v) evaluate prudential standards, such as capital adequacy and risk asset exposure, on a worldwide basis. These are indicia of comprehensive, consolidated supervision. No single factor is essential, and other elements may inform the Board's determination.

(3.) See Paribas, 85 Federal Reserve Bulletin 449 (1999); Credit Agricole Indosuez, 83 Federal Reserve Bulletin 1025 (1997); Caisse Nationale de Credit Agricole, 81 Federal Reserve Bulletin 1055 (1995); Banque Nationale de Paris, 81 Federal Reserve Bulletin 515 (1995).

(4.) The Board's authority to approve the establishment of the proposed agency parallels the continuing authority of the State of Connecticut to license offices of a foreign bank. The Board's approval of this application does not supplant the authority of the Connecticut Department of Banking ("Department") to license the proposed office of Bank in accordance with any terms or conditions that the Department may impose.

ROBERT DEV. FRIERSON
Associate Secretary of the Board

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